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WEDNESDAY, OCTOBER 29, 1986

MR HU SAID THE COMMITTEE HAD CONCLUDED THAT WHILE THE GOVERNMENT MUST CONTINUE TO TAKE CARE OF THOSE WHO WERE LEAST ABLE TO CARE FOR THEMSELVES, IT HAD TO LOOK FOR WAYS AND MEANS TO REDUCE EXPENDITURE IN PUBLIC HOUSING, WITHOUT CAUSING UNDUE HARDSHIP OR PUTTING THE OBJECTIVE OF THE PROGRAMME IN JEOPARDY.

+THE COMMITTEE SEES NO REASON TO CARRY ON POLICIES WHICH ALLOW FOR ACROSS-THE-BOARD SUBSIDIES, PARTICULARLY TO THOSE WHO COULD HAVE AFFORDED TO SHARE A LARGE PART OF THE COSTS WITHOUT THE DANGER OF LOWERING THEIR LIVING STANDARD, HE SAID.

NOTING THAT THE SUGGESTION TO REMOVE BETTER-OFF TENANTS FROM PUBLIC HOUSING HAD BEEN RULED OUT BY THE HOUSING AUTHORITY MR HU SAID A SENSIBLE ALTERNATIVE WOULD BE TO ASK SUCH TENANTS TO PAY A MORE REALISTIC RENT IN ORDER TO REDUCE THE HOUSING SUBSIDIES GIVEN TO THEM.

+SUCH A MEASURE NOT ONLY ENSURES THAT THE LIMITED AVAILABLE RESOURCES CAN BE RECYCLED TO AREAS WITH MOST URGENT NEED BUT ALSO HELPS TO ACHIEVE A GREATER DEGREE OF EQUITY, HE SAID.

HE SAID HIGHER RENTS WOULD ALSO BE AN INCENTIVE FOR BETTER-OFF TENANTS TO SERIOUSLY CONSIDER BUYING HOME OWNERSHIP FLATS, ESPECIALLY WHEN THE DIFFERENCE BETWEEN RENT AND MONTHLY MORTGAGE REPAYMENT WAS NOT SIGNIFICANT.

THE UNITS LEFT VACANT BY TENANTS BUYING THEIR OWN FLATS COULD THEN BE USED FOR THOSE WHO HAD BEEN WAITING TO MOVE INTO PUBLIC HOUSING, HE SAID.

TURNING TO CRITICISM ABOUT THE CALCULATION OF A HOUSEHOLD'S TOTAL INCOME, MR HU SAID THAT IN ALL FAIRNESS ALL THOSE WHO HAD AN INCOME SHOULD HAVE EQUAL RESPONSIBILITY IN BEARING COMMON EXPENSES, A TYPICAL EXAMPLE OF WHICH WAS RENT.

+ IT IS THEREFORE NOT UNREASONABLE TO INCLUDE THE FULL INCOME OF EACH IN THE TOTAL HOUSEHOLD INCOME, HE SAID.

+OTHER WAGE EARNERS OF THE HOUSEHOLD WILL STILL KEEP A CONSIDERABLE PROPORTION OF THEIR INCOME FOR THEIR OWN EXPENDITURE, HE ADDED.

IN ADDITION, HE SAID, THE SUBSIDY INCOME LEVEL, WHICH SET A BASIS FOR CHARGING DOUBLE RENT, HAD BEEN RAISED TO TWICE THE WAITING LIST INCOME LEVEL, AND THUS A SMALLER NUMBER OF TENANTS WOULD BE AFFECTED.

COMMENTING ON A SUGGESTION ABOUT A COMPULSORY INCOME DECLARATION, HE POINTED OUT THAT SUCH A MOVE COULD BE SEEN AS AN INFRINGEMENT ON THE PRIVACY OF THOSE WHO DID NOT WISH TO DECLARE THEIR INCOME AND WERE PREPARED TO PAY DOUBLE RENT.

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THEREFORE, THE

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